'It's time for the shrimp industry to stop chasing quantity'

Mr. Le Van Quang, General Director of Minh Phu Seafood Corporation at the Government Standing Committee Conference working with large enterprises on solutions to contribute to the country's socio-economic development.

Vietnam's shrimp exports account for 14% of the total global shrimp value.

According to Mr. Le Van Quang, General Director of Minh Phu Seafood Corporation, Vietnam's shrimp is one of two aquatic species included in the country's aquaculture development strategy, with a total export value of 3.5 - 4 billion USD, accounting for 13 - 14% of the total global shrimp value.

Vietnam is considered to have the most modern shrimp processing technology and has strengths in producing value-added and high-end products. Many of Vietnam's processed shrimp products have high added value that Ecuador and India cannot process or can process little.

However, up to now, the Vietnamese shrimp industry and the agricultural industry in general are facing   not a few challenges

That is the decreasing shrimp output. In 2023, Vietnam's shrimp output decreased sharply by 32%, while Ecuador increased by 14%, India increased by 2%, Thailand decreased by 9%, Indonesia decreased by 12%.

The selling price of commercial shrimp has also dropped sharply due to the economic recession and consumers tightening their spending, while the cost of shrimp in Vietnam is very high and uncompetitive.

The high cost of labor for shrimp processing is due to the fact that industrial parks are often located in fields far from residential areas, causing businesses to spend a lot of money on transporting workers and the time it takes workers to travel from home to work is longer, reducing labor productivity. At the same time, the high cost of living for workers puts pressure on businesses to increase wages, and currently, Vietnamese workers' wages are at a high level in the region.

Wastewater treatment costs are very high. Because businesses must treat water to meet Type B standards at a cost of 5,000 VND/m3 and then bring it to the industrial park's centralized wastewater treatment area to treat wastewater to Type A at a cost of 10,000 to 15,000 VND/m3. If businesses treat wastewater to meet Type A, it will only cost no more than 5,500 VND/m3.

Shrimp farmers have not yet applied for BAP, ASC, organic/ecological shrimp certifications, etc., so it is difficult to sell shrimp and the price is not high.

The success rate of shrimp farming in Vietnam is currently only 40%, too low compared to Ecuador (90%) and India (60-70%).

Vietnam's shrimp is one of two aquatic species included in the country's aquaculture development strategy, with a total export value of 3.5 - 4 billion USD, accounting for 13 - 14% of the total global shrimp value.

It's time for the shrimp industry to stop chasing quantity...

Recommending and proposing to improve the competitiveness of the shrimp industry to develop sustainable and effective agriculture, Mr. Le Van Quang emphasized: "It is time for the shrimp industry to change its thinking: Instead of chasing output and high technology (quantity), we need to focus on sustainability and efficiency (quality, environment, health and selling price)"...

Regarding the policy of planning and managing breeds, Mr. Quang recommended: The Ministry of Agriculture and Rural Development should study and propose amendments to regulations on shrimp seed production; allowing large domesticated shrimp farming enterprises to select breeds according to natural selection to obtain disease-resistant shrimp seeds that are adaptable to the weather, climate and environment of each farming area.

Regarding farming methods: Growing plants and animals using biotechnology that is within the carrying capacity of the environment, environmentally friendly and reduces carbon emissions. Minh Phu is guiding and transferring to shrimp farmers MPBiO biotechnology integrating 9 of the world's leading shrimp farming technologies, helping the success rate to be 90% or higher with the same or lower cost than Ecuador, but with beautiful red color, delicious flavor and 20% higher selling price.

Regarding the water supply and drainage system: The State needs to invest in building a system of canals, dykes, and separate water supply and drainage systems.

Regarding biological agricultural materials: Support Vietnamese enterprises in applying and developing fertilizers, biological feed, and biological products for livestock and crops. Implement the agricultural sector towards a circular economy, turning waste, scrap, and agricultural by-products into valuable products and returning them to serve the sustainable development of agriculture.

The State also needs to pay attention to investing in digital and AI platforms for the agricultural sector.

In addition, there is investment in building urban industrial parks; the most professional farming industrial parks are investing in complexes including processing industry, linked with farming industry and convenient urban residential areas), commercial centers, logistics and agricultural product distribution.

Mr. Quang also proposed that the State support the planning stage, Minh Phu is willing to spend resources to invest in construction and is planning some shrimp industrial parks in Kien Giang, Ca Mau; 02 agricultural product promotion centers in Hanoi, Ho Chi Minh City...

In 2024, the company aims to achieve VND 1,265 billion in consolidated net profit, with the results of the first 6 months of the year, Minh Phu has only completed 3.6% of the plan.

It is known that Minh Phu Seafood has set up a business plan for 2024 with a revenue target of VND 18,568 billion, an increase of 72% compared to 2023 and a profit after tax of VND 1,265 billion, compared to a loss of VND 105 billion in 2023. If the plan is completed, this will be Minh Phu's highest profit since 2008.

According to the consolidated financial report of Minh Phu Seafood Corporation (UPCoM: MPC), the company's net revenue in the second quarter of 2024 reached VND 3,738 billion, an increase of 59% over the same period last year.

After deducting expenses, the company's after-tax profit reached 38.4 billion VND, nearly 4 times higher than the same period last year.

Accumulated in the first 6 months of 2024, the company's net revenue reached 6,488 billion VND, an increase of 45% over the same period last year. Minh Phu's after-tax profit reached 45.6 billion VND, while in the same period, it recorded a negative 88 billion VND.

In 2024, the company aims to achieve VND 1,265 billion in consolidated net profit, with the results of the first 6 months of the year, Minh Phu has only completed 3.6% of the plan.

Source: https://danviet.vn/vua-tom-minh-phu-le-van-quang-da-den-luc-nganh-tom-khong-the-chay-theo-so-luong-20240924105909576.htm